Rochdale Defections Mount as Three Traders Depart

Rochdale Securities LLC, the
brokerage struggling to survive and keep its staff after an
unapproved $1 billion trade in Apple Inc. (AAPL) soured, lost three
more traders to competitors.

Richard Bennett and Keith Arnott, who work as equity sales
traders, defected to MKM Partners LLC, while Barry Kaplan joined
Oscar Gruss & Son Inc. in New York, Financial Industry
Regulatory Authority records show. Rochdale lost five traders to
Rafferty Capital Markets LLC earlier this month, including
Kristen Talgo and Hal Tunick, who led equities institutional
trading from Rochdale’s Stamford, Connecticut headquarters.

Rochdale President Daniel J. Crowley is seeking a rescue
for the 37-year-old company that employs Dick Bove, the analyst
known for his coverage of the biggest U.S. banks. The task has
been complicated by departures and possible regulatory probes,
people with knowledge of the situation have said.

Bennett, who has worked in the securities industry for more
than 40 years, joined MKM, the Stamford-based equity research
and trading firm, on Nov. 26 along with Arnott, Finra records
show. Reached at MKM, Arnott declined to comment. Bennett didn’t
immediately return an e-mail seeking more information.

Kaplan, who works in merger arbitrage and special
situations, confirmed in an e-mail that he had joined Oscar
Gruss, the brokerage that traces its roots to Poland almost a
century ago. Crowley and Michael Shaoul, head of Oscar Gruss,
didn’t return calls seeking comment.

Top executives told potential investors that an employee
named David Miller bought about $1 billion of Apple stock around
the time of the Cupertino, California-based technology firm’s
October earnings release, the people said. Kenneth “Casey”
Murphy, Miller’s lawyer at Simon & Partners LLP, said earlier
his client had no comment.

Rochdale has provided trading and research for
institutional clients since 1975, according to its website.